Pegasus Group Expands Portfolio With Value Place Hotels
12/05/2008
Real estate investment and management firm The Pegasus Group, owner of 30 self-storage facilities nationwide, is expanding its portfolio with hotels. The company will open 10 Value Place extended-stay hotels throughout North California. It broke ground on its first hotel in Sacramento in late October and is pursuing properties in the East Bay, Marin, Monterey, Peninsula and South Bay areas. It is also exploring joint ventures with partners looking to diversify.
Since 1985, Walnut Creek, Calif.-based Pegasus Group has been investing in self-storage facilities, mobile-home parks, and big-box stores from Oahu, Hawaii, to South Hampton, N.Y. In 2006, the company sold more than half of its 65 self-storage properties to a private equity group to pursue a new venture.
“We selected Value Place because of its many synergies with the self-storage industry. The marketing, management, and the site selection are very similar, as are the demographics,” said Bob Dailey, a partner in Pegasus Group. The company decided to focus on Value Place to keep its management efficient and use the company’s existing team and strengths to the best of its ability, he said.
Founded in 2002, Value Place is an extended-stay hotel chain with more than 100 locations in 25 states. The company expects to have approximately 120 locations open by the end of the year. Forty-seven franchise groups have committed to build more than 600 Value Place hotels over the next five years. For more information, visit www.valueplace.com.
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